1 month ago
CBDT Issues Crypto Reporting Guidance Without New Taxes
The Central Board of Direct Taxes (CBDT) in India has issued new guidelines for reporting crypto-asset transactions.
This guidance does not introduce any new taxes but requires crypto exchanges to track and report all transactions.
The goal is to bring more transparency to crypto transactions, similar to how banks report financial transactions.
The guidance defines what counts as a crypto-asset and outlines the reporting obligations for crypto exchanges.
Tax experts say this is a step towards better transparency and compliance, but some worry about privacy concerns.
Investors are advised to keep accurate records of their crypto transactions to match the information reported by exchanges.
CBDT issued a guidance note on crypto-asset reporting without introducing new taxes.
Crypto exchanges must track and report all transactions to enhance transparency.
The guidance defines crypto-assets and outlines reporting obligations for exchanges.
Tax experts view this as a compliance and transparency measure, not a substantive tax change.
Investors should maintain accurate records to ensure their disclosures match exchange reports.
- Who
- Central Board of Direct Taxes (CBDT)
- What
- Issued guidance note on crypto-asset reporting
- Where
- India
- When
- July 26, 2026
- Why
- To enhance transparency and tax compliance in crypto transactions
Tax Transparency Advocates
Crypto Privacy Advocates
Purpose of Reporting
Tax Transparency Advocates
Supports transparency and tax compliance, ensuring crypto transactions are reported accurately.
Crypto Privacy Advocates
Concerns about privacy and potential misuse of personal financial data.
Impact on Investors
Tax Transparency Advocates
Encourages accurate reporting and documentation, reducing tax evasion risks.
Crypto Privacy Advocates
Increased scrutiny and potential for overreach by tax authorities.
Key facts
- Issuing Authority
- Central Board of Direct Taxes (CBDT)
- Effective Date
- July 26, 2026
- Reporting Framework
- Crypto-Asset Reporting Framework (CARF)
- Tax Rate on Gains
- 30%
- Tax Deducted at Source (TDS)
- 1%
- Excluded Assets
- Central Bank Digital Currencies (CBDC), specified electronic money products, and non-investable crypto assets
Quotes
Amit Agarwal, Senior Partner, Nangia & Co
Tax law partner and expert
“"Given that the Crypto-Asset Reporting Framework (CARF) is developed jointly by participating jurisdictions, including India, working with the OECD, the Commentary on CARF and other relevant materials have also been cited, so as to facilitate their reference by the RCASPs, where so required," it said.”
businesstoday.in
“"Therefore, CBDT is essentially creating an institutional reporting mechanism whereby crypto exchanges become the primary source of information for the tax authorities, much like banks and financial institutions currently do under other global reporting standards," he said.”
businesstoday.in
Amit Agarwal
Senior Partner at Nangia & Co LLP
“This development is less about imposing additional taxes and more about ensuring that crypto transactions become part of a robust and transparent tax reporting ecosystem.”
thehindubusinessline.com
Sources
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